|ACT OF THE GENERAL ASSEMBLY||2007-2008|
NO. 159. AN ACT RELATING TO ANGEL INVESTORS.
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 8 V.S.A. § 2201(c) is amended to read:
(c) No license shall be required of:
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nonprofit institutions of higher education, exempt from taxation under Section
501(c)(3) of the Internal Revenue Code, that make residential mortgage loans to
their employees from their own funds;
(12) a seller who, pursuant to subdivision 2355(f)(1)(D) of Title 9, includes the amount paid or to be paid by the seller to discharge a security interest, lien interest, or lease interest on the traded-in motor vehicle in a motor vehicle retail installment sales contract, provided that the contract is purchased, assigned, or otherwise acquired by a sales finance company licensed pursuant to this title to purchase motor vehicle retail installment sales contracts or a bank; or
(13)(A) a person making an unsecured commercial loan, which loan is expressly subordinate to the prior payment of all senior indebtedness of the commercial borrower regardless of whether such senior indebtedness exists at the time of the loan or arises thereafter. The loan may or may not include the right to convert all or a portion of the amount due on the loan to an equity interest in the commercial borrower.
(B) For purposes of this subdivision (13), “senior indebtedness” means:
(i) all indebtedness of the commercial borrower for money borrowed from banks, trust companies, credit unions, insurance companies, and licensed lenders, and any guarantee thereof; and
(ii) any other indebtedness of the commercial borrower that the lender and the commercial borrower agree shall constitute senior indebtedness.
Sec. 2. EFFECTIVE DATE
This act shall take effect on passage.
Approved: May 20, 2008
The Vermont General Assembly
115 State Street